Malaysian stock market takes regime change in its stride

SINCE the stunning outcome of Malaysia's GE14 general election a week ago on May 9 that saw a change of government for the first time in 61 years, two chief narratives have played out in the Malaysian bourse: one of hope or a medium to long-term "reform play"; and the other - a more near-sighted one - of fear and uncertainty.

Many analysts, in tacit acknowledgement of the "fear politics" peddled by the Barisan Nasional (BN) coalition prior to the polls that a change of government would be disastrous, had expected the equity market to display jitters or a panic sell-down in the aftermath of the "mother of all elections".

None of that happened.

The benchmark FBM KLCI index has in fact defied expectations (like the elections outcome) and held up well over the first four trading days since the stock market re-opened on Monday; the index has closed marginally in the red for two of tho…